Issuer of the largest stablecoin USDT Tether Holdingsis preparing to close 2024 with a net profit exceeding 10 billion dollars. This success mobilized global banks. Many large banks from Europe to Asia stablecoin marketHe is planning to enter.
European Banks Are Preparing to Issue Stablecoins
France’s giant bank Societe Generale‘s subsidiary SG-Forge has opened its Euro-backed stablecoin to retail investors. German investment bank Oddo BHF is working on a new stablecoin denominated in Euro. UK based digital bank Revolutis also reportedly considering launching its own stablecoin.
Subsidiary of German Deutsche Bank DWSplans to launch a stablecoin in 2025. Spanish BBVAaims to launch a pilot project in 2025, working in partnership with Visa. If in Hong Kong Standard CharteredA consortium including , Animoca Brands and Hong Kong Telecom is testing to launch a Hong Kong dollar-backed stablecoin.
Banks in the US and Other Regions Are Winking at the Stablecoin Market
US banks stablecoin Its entry into the market depends on the clarification of regulatory frameworks. The tokenization network that Visa will launch with BBVA in 2025 will support the technological infrastructure in this field. Head of Visa Crypto Cuy Sheffieldannounced that they received high demand from banks in Hong Kong, Singapore and Brazil.
JPMorgan Chase He thinks stablecoins can coexist with deposit tokens he developed. Manager of Kinexys, the company’s digital asset unit Naveen MallelaInterest in bank-based stablecoins will grow rapidly and become mainstream within the next three years, he said.
However, these initiatives are not without risks. European Central BankAccording to ‘s analysis, stablecoins’ reduction in retail deposits could reduce banks’ liquidity ratio. In the USA, it remains unclear what reserves stablecoins will be supported by and whether these currencies will be covered by insurance.
With the rise of cryptocurrencies, banks have entered a new competition. While Tether’s huge profits present an opportunity for banks, regulatory uncertainties seem to determine who will come forward in this race.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
